What is the horizon value at 2022

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Current and projected free cash flows for Radell Global Operations are shown below.

 

Actual

Projected

 

2019

2020

2021

2022

Free cash flow

$614.020

$674.700

$714.747

$763.840

(millions of dollars)

 

 

 

 

Growth is expected to be constant after 2021, and the weighted average cost of capital is 11.25%. What is the horizon (continuing) value at 2022 if growth from 2021 remains constant? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

Reference no: EM133072327

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